Gross margins have deteriorated from a peak of 20.7% in 2023Q4 to 14.6% in 2026Q1, indicating that the company is struggling to maintain profitability amidst rising construction costs and increased sales incentives.
| Sales/Revenue | 4.22B | 4.32B | 4.45B | 3.75B | 3.34B | 1.92B | 1.13B | 976.56M | 522.26M |
| Revenue Growth % | -8.51% | -2.89% | 18.75% | 12.15% | 73.73% | 69.69% | 16.1% | 86.99% | - |
| Cost of Goods Sold | 3.53B | 3.57B | 3.62B | 3.01B | 2.72B | 1.61B | 962.93M | 844.38M | 454.4M |
| COGS % of Revenue | - | 82.54% | 81.39% | 80.35% | 81.44% | 83.7% | 84.93% | 86.46% | 87.01% |
| Gross Profit | 690.78M | 754.77M | 828.58M | 736.77M | 620.2M | 313.58M | 170.88M | 132.18M | 67.86M |
| Gross Margin % | 16.37% | 17.46% | 18.61% | 19.65% | 18.56% | 16.3% | 15.07% | 13.54% | 12.99% |
| Gross Profit Growth % | - | -8.91% | 12.46% | 18.8% | 97.78% | 83.51% | 29.28% | 94.8% | - |
| Operating Expenses | 478.62M | 485.21M | 395.75M | 308.8M | 271.04M | 154.41M | 90.79M | 83M | 43.55M |
| OpEx % of Revenue | - | 11.22% | 8.89% | 8.24% | 8.11% | 8.03% | 8.01% | 8.5% | 8.34% |
| Selling, General & Admin | 479.42M | 485.21M | 395.75M | 308.8M | 271.04M | 154.41M | 90.79M | 83M | 43.55M |
| SG&A % of Revenue | - | 11.22% | 8.89% | 8.24% | 8.11% | 8.03% | 8.01% | 8.5% | 8.34% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -800K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 212.16M | 269.55M | 432.83M | 427.98M | 349.16M | 159.17M | 80.09M | 49.18M | 24.31M |
| Operating Margin % | 5.03% | 6.24% | 9.72% | 11.42% | 10.45% | 8.27% | 7.06% | 5.04% | 4.65% |
| Operating Income Growth % | - | -37.72% | 1.13% | 22.57% | 119.36% | 98.75% | 62.86% | 102.29% | - |
| EBITDA | 242.35M | 298.71M | 450.05M | 445.87M | 366.25M | 169.02M | 92.85M | 62.35M | 28.41M |
| EBITDA Margin % | 5.74% | 6.91% | 10.11% | 11.89% | 10.96% | 8.79% | 8.19% | 6.38% | 5.44% |
| EBITDA Growth % | -47.62% | -33.63% | 0.94% | 21.74% | 116.68% | 82.03% | 48.93% | 119.43% | - |
| D&A (Non-Cash Add-back) | 30.19M | 29.16M | 17.21M | 17.9M | 17.09M | 9.85M | 12.76M | 13.17M | 4.1M |
| EBIT | 231.74M | 284.1M | 437.85M | 404.43M | 356.19M | 162.72M | 85.38M | 48.51M | 23.94M |
| Net Interest Income | 0 | 0 | 0 | -1K | -32K | -672.17K | -871K | -221.45K | -682.15K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 1K | 32K | 672K | 870.87K | 221.45K | 682.15K |
| Other Income/Expense | 19.58M | 14.55M | 5.02M | -23.55M | 7M | 2.88M | 4.43M | -2.11M | -1.05M |
| Pretax Income | 231.74M | 284.1M | 437.85M | 404.43M | 356.16M | 162.05M | 84.51M | 47.07M | 23.26M |
| Pretax Margin % | 5.49% | 6.57% | 9.84% | 10.79% | 10.66% | 8.42% | 7.45% | 4.82% | 4.45% |
| Income Tax | 55.79M | 66.7M | 97.27M | 96.48M | 81.86M | 27.45M | 0 | 10.34M | 0 |
| Effective Tax Rate % | 24.07% | 23.48% | 22.22% | 23.86% | 22.98% | 16.94% | 0% | 21.97% | 0% |
| Net Income | 175.55M | 217.2M | 335.34M | 295.9M | 262.31M | 122.38M | 79.09M | 31.02M | 17.32M |
| Net Margin % | 4.16% | 5.02% | 7.53% | 7.89% | 7.85% | 6.36% | 6.98% | 3.18% | 3.32% |
| Net Income Growth % | -47.71% | -35.23% | 13.33% | 12.8% | 114.35% | 54.73% | 154.98% | 79.07% | - |
| Net Income (Continuing) | 175.95M | 217.4M | 340.58M | 307.94M | 274.3M | 134.59M | 84.51M | 36.73M | 23.26M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 31.34M | 31.04M | 26.94M | 13.07M | 12.97M | 24.08M | 31.94M | 30.47M | 28.93M |
| EPS (Diluted) | 1.90 | 2.14 | 3.21 | 2.66 | 2.32 | 1.27 | 0.85 | 0.34 | 0.19 |
| EPS Growth % | -45.63% | -33.33% | 20.68% | 14.66% | 82.68% | 49.41% | 150% | 78.95% | - |
| EPS (Basic) | - | 2.33 | 3.44 | 3.03 | 2.67 | 1.27 | 0.85 | 0.34 | 0.19 |
| Diluted Shares Outstanding | 92.43M | 101.3M | 100.3M | 106.03M | 106.69M | 92.52M | 92.52M | 92.52M | 92.52M |
| Basic Shares Outstanding | 92.02M | 93.11M | 93.51M | 93.07M | 92.75M | 92.52M | 92.52M | 92.52M | 92.52M |
| Dividend Payout Ratio | - | - | - | - | - | 19.03% | - | 26.75% | 67.61% |
Regional housing demand volatility
As reported in recent financial filings, Dream Finders Homes experienced a significant revenue deceleration, culminating in a 10.3% year-over-year contraction in 2026Q1, which highlights the sensitivity of the company's homebuilding volume to current interest rate environments and localized demand shifts within its core Sunbelt markets.
The transition from double-digit growth in 2024 to consistent quarterly declines suggests that the company's reliance on rapid scaling may be hitting a cyclical ceiling. Investors should monitor whether this contraction reflects a strategic pivot toward lower-priced inventory or an inability to maintain absorption rates in key Florida and Texas corridors.
Based on the company's income statement data, gross margins have deteriorated from a peak of 20.7% in 2023Q4 to 14.6% in 2026Q1, indicating that the land-light model may be struggling to absorb rising construction costs and the increased use of sales incentives to drive home closings.
The structural decline in gross profitability suggests that the premium paid for optioned lots is becoming increasingly burdensome as pricing power wanes. This trend warrants further investigation into whether the company is sacrificing long-term margin stability to maintain market share in a cooling residential construction environment.
According to the provided quarterly data, operating margins have compressed significantly to 2.2% in 2026Q1, demonstrating that the company's SG&A expenses are not scaling efficiently against the backdrop of declining gross profits and the inherent volatility of the homebuilding business model during periods of reduced demand.
The inability to protect operating income as revenue contracts suggests a lack of flexibility in the cost structure, which may be exacerbated by the fixed nature of overhead costs relative to the variable revenue stream. This margin erosion implies that the company's current operational footprint may be oversized for the prevailing market conditions.
As evidenced by the financial statements, net income has faced substantial volatility, with stock-based compensation expenses reaching as high as $9.5 million in 2025Q1, which serves to dilute the quality of reported earnings and complicates the assessment of true operational profitability for shareholders.
The presence of recurring stock-based compensation during periods of declining net income suggests that management's incentive structure may not be fully aligned with the current cyclical downturn. Analysts should adjust for these non-cash charges to better understand the underlying cash-generating capacity of the core homebuilding and financial services segments.
Quick answers to the most common questions about buying DFH stock.
For fiscal year 2025, Dream Finders Homes, Inc. (DFH) reported total revenue of $4.32B. This represents a 727.7% increase compared to $522.3M in 2018.
Dream Finders Homes, Inc. (DFH) is profitable, generating $217.2M in net income for the fiscal year ending 2025 with a net profit margin of 5.0%.
Dream Finders Homes, Inc. (DFH) reported an operating income of $269.6M, resulting in an operating profit margin of 6.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Dream Finders Homes, Inc. (DFH) generated $754.8M in gross profit for the year, representing a gross profit margin of 17.5%. This demonstrates the company's core pricing power and production efficiency.